An advantage of the reciprocal method is that it highlights the complete reciprocated costs of support departments and how these costs differ from budgeted or actual costs of the departments.

Question

Quizplus · Accepted Answer

The reciprocal method involves allocating support department costs based on both the direct and indirect services they provide to other departments. This method takes into account the complete costs of support departments, including costs that may have been overlooked or not fully accounted for in other methods. Therefore, the statement is true.

An Advantage of the Reciprocal Method Is That It Highlights